President Yoon Suk Yeol delivers congratulatory remarks at the groundbreaking ceremony for an S-Oil petrochemical plant in the southeastern city of Ulsan on March 9, 2023. (Pool photo) (Yonhap)
SEOUL, March 9 (Korea Bizwire) — President Yoon Suk Yeol attended the groundbreaking ceremony for a 9.3 trillion-won (US$7 billion) petrochemical plant in the southeastern city of Ulsan on Thursday, hailing the project as a symbol of the friendship and trust between South Korea and Saudi Arabia, his office said.
The “Shaheen project,” named after the Arabic word for falcon, Saudi Arabia’s national bird, aims to construct a large-scale petrochemical production facility at S-Oil’s Onsan industrial complex in Ulsan, 307 kilometers southeast of Seoul.
S-Oil is South Korea’s No. 3 oil refiner in which Saudi Arabia’s state-run oil giant, Saudi Aramco, holds the largest stake.
Yoon marked the start of the project, which was finalized during his meeting with Saudi Crown Prince Mohammed bin Salman in Seoul last November, saying it is a key achievement of economic diplomacy between South Korea and Saudi Arabia.
He also promised to drastically improve domestic regulations that do not meet global standards so as to help foreign investment firms freely conduct business in South Korea, his office said.
The Shaheen project will build a steam cracking facility and other units to produce basic petrochemical feedstock, such as ethylene and naphtha, for plastics and other synthetic resins.
The project will create 17,000 jobs during peak construction and an added value to the economy worth about 3 trillion won, S-Oil said.
The project is S-Oil’s second-phase petrochemical investment after spending $4 billion for the downstream expansion.
S-Oil, 63.4 percent owned by Aramco, has been bolstering its push for petrochemical and other green energy sectors to diversify future growth engines under a carbon neutrality blueprint.
(From L to R) Mohammed Y. Al Qahtani, executive vice president of Aramco; Ulsan Mayor Kim Doo-kyum; Hussain A. Al Qahtani, CEO of S-Oil Corp.; President Yoon Suk Yeol; Amin Nasser, president and CEO of Aramco; and other officials together throw the first shovel of dirt during the groundbreaking ceremony for the Shaheen Project in Ulsan, 307 kilometers southeast of Seoul, on March 9, 2023, in this photo provided by S-Oil.
Following the project’s completion slated for 2026, the plant will increase the rate of naphtha production by around three times, marking the first commercialization of a new process that maximizes the production of industrial material, according to the presidential office.
The facility will also be the largest single petrochemical production plant in the world boasting the highest level of energy efficiency, and help the stable supply of industrial material as well as the production and export of high value-added petrochemical products, it said.
In total, the facility is expected to increase South Korea’s export value by around $900 million.
Amin Nasser, president and CEO of Aramco; Hussain Al Qahtani, CEO of S-Oil; Industry Minister Lee Chang-yang; and Ulsan Mayor Kim Doo-kyum were among the attendees at the event.
Ahead of the ceremony, Yoon met with Nasser, saying the Shaheen project symbolizes the smooth path the two countries are following in producing actual results and promising the South Korean government’s cooperation for the project’s success.
Yoon also said the government will increase incentives for foreign investment and help with various licensing requirements, adding he hopes the success of the Shaheen project will lead to additional cooperation in energy and other fields.
Later in the day, Yoon visited a Hyundai Motors auto shipment pier in Ulsan, where he was briefed on the company’s plans to build a new electric vehicle plant.
(Yonhap)
